Recently, I ran a survey of 1000 retail investors to determine where their heads were at on the economy and earning extra cash with a side hustle. The results were astounding.
Many people believe we are in, or on the verge of, a recession. These are questionable times for investors, so it’s helpful to look into how some successful people are managing their own capital. We asked them, “How has the current economy shifted the way you invest?”
Of course, this is not financial advice. To help during these more frugal times, we asked what a few CEOs, founders, and other investors are doing, to see their thought process on investment shifts to deal with an uncertain future.
Below, several retail investors share their thoughts on investing during a recession. Be sure you check with a professional financial advisor if you plan to invest your own money in one way or another:
- I Still Believe in Long-Term Potential for Cryptocurrency
- I Became Less Aggressive and More Cautious
- I Shifted to Invest More in Gold
- I’ve Been Looking into Real Estate Instead of Altcoins
- I Focus on Fixed Income and High Dividends
I Still Believe in Long-Term Potential for Cryptocurrency
I started investing when I was in college and my capital has risen to almost $1 million.
I used to be heavily invested in the stock market, and I dabbled in cryptocurrency, but I have since shifted my focus to precious metals. I believe we are on the verge of a recession, and I want to protect my assets.
I have always been a pretty conservative investor, but this current economy has made me even more risk-averse. The inflation rates are high and companies are struggling to keep up with their costs, and their share prices are taking a fall. I don’t want to put all my eggs in one basket, so I have skewed my portfolio towards Gold and Silver. These metals are the best means that will take me through this inflation.
I still believe in the long-term potential of stocks and crypto, but I think it is wise to play it safe during these uncertain times. Precious metals are a more stable investment, and I sleep better at night knowing my money is not as susceptible to market fluctuations.
I Became Less Aggressive and More Cautious
The current state of the economy has definitely shifted how I invest my money. I used to be much more aggressive with my investments, but now I am a lot more conservative.
I have still invested in stocks and cryptocurrency, but I have diversified my portfolio a lot more than I used to. I am now also investing in things like bonds and real estate, which provide a steadier return in times of economic uncertainty.
Overall, I think that the current economy has made me a much more cautious investor. However, I still believe that there is potential for growth, even in tough economic times.
I Shifted to Invest More in Gold
In short, the current economy has shifted the way I invest because it has caused me to be more conservative in my investments, and given me a greater appreciation for the value of gold.
I used to think that investing was a game of risk and reward, where you could make a lot of money if you took risks. But as I’ve gotten older and seen more economic crises happen around the world, I realize that investing is actually about minimizing risk and maximizing your chances for long-term success.
The current recession has made this realization even more clear. When people are fearful about their economic futures, they hold on to their money instead of using it for investment.
The result is that companies either have a harder time getting off the ground or they go under altogether because they can’t find enough capital flow from investors who are worried about their own future. This makes me want to invest my money wisely in gold rather than stocks.
I’ve Been Looking into Real Estate Instead of Altcoins
The current economic recession has shifted the way I invest because it has made me more cautious and conservative. I am now more likely to invest in safe, reliable real estate than to speculate on more risky investments like Altcoins.
I also tend to hold onto my real estate for longer, hoping it will recover its value. Overall, the current economic situation has caused me to be more conservative with my investments and to be more patient.
I Focus on Fixed Income and High Dividends
With a recession possibly on the horizon and interest rates rising, I am taking advantage of short term fixed-income investments that are yielding over 4%. These investments are a great way to protect against inflation and the risk of a looming recession. I am also continuing to invest in dividend-paying stocks, which have become much cheaper and historically performed well in a recessionary environment.